Kolkata - 4 vs M/S. Jct Limited
2024 Latest Caselaw 1807 Cal/2

Calcutta High Court

Kolkata - 4 vs M/S. Jct Limited on 14 May, 2024

Author: Rajarshi Bharadwaj

Bench: Rajarshi Bharadwaj

                                        1




OD - 3
                        IN THE HIGH COURT AT CALCUTTA
                      Special Jurisdiction [Income Tax]
                                   ORIGINAL SIDE
                                     ITA/79/2018
                                     PRINCIPAL COMMISSIONER OF INCOME TAX,
                                     KOLKATA - 4, KOLKATA
                                          VS
                                     M/S. JCT LIMITED


BEFORE :
THE HON'BLE JUSTICE SURYA PRAKASH KESARWANI
            And
THE HON'BLE JUSTICE RAJARSHI BHARADWAJ
Date : 14th May, 2024

                                                                Appearance :
                                            Sri Smarajit Roy Chowdhury, Adv.
                                                        ..for the appellant.

                                              Sri Akhilesh Kumar Gupta, Adv.
                                                   Smt. Akshara Shukla, Adv.
                                                        Sri Aritra Nag, Adv.
                                                      ...for the respondent.

1. Heard Sri Smarajit Roy Chowdhury, learned senior standing

counsel for the appellant and Sri Akhilesh Gupta, learned

counsel for the respondent.

2. This appeal was admitted by order dated 13.6.2018 on the

following substantial question of law :

"Whether the Learned Tribunal erred in law in allowing deduction of interest on borrowed capital without first satisfying itself that the borrowed capital had been utilized for the purpose of business in accordance with Section 36(1)(iii) and Section 37(1) of the Income Tax Act, 1961?"

3. This appeal relates to assessment years 1998-99, 2001-02,

2002-03 and 2003-04. The impugned order dated 4.12.2015

is a common order passed by the Income Tax Appellate

Tribunal, "B" Bench, Kolkata in two appeals filed by the

revenue involving the afore-noted four assessment years.

Common question of fact and law are involved.

4. In the impugned order the ITAT has followed its earlier

order passed in Income Tax Appeal No.1135/Kol/2003 for

the assessment year 1994-95 which has been affirmed by

this Court by judgment and order dated 19.12.2023 in

ITA/19/2013 (Commissioner of Income Tax, Kolkata - IV Vs.

JCT Limited). In the impugned order the ITAT has also

recorded finding of fact. The assessing officer has not

disputed the availability of the surplus fund of the

assessee.

5. Both the learned counsel for the parties jointly agree

that the controversy involved in the present appeal for

the aforesaid assessment years is squarely covered by

judgment and order dated 19.12.2023 in ITA/19/2013

(Commissioner of Income Tax, Kolkata - IV Vs. JCT

Limited) passed by this Court and in view thereof, both

the substantial question of law deserves to be answered

against the revenue and in favour of the assessee and the

appeal deserves to be dismissed.

6. In view of the aforesaid, the appeal is dismissed. The

substantial question of law is answered in favour of the

assessee and against the revenue.

(SURYA PRAKASH KESARWANI, J.)

(RAJARSHI BHARADWAJ, J.) Sd/